Federal Judge Blocks Trump Administration’s $100,000 H-1B Visa Fee, Ruling It an Unlawful Tax

Federal Judge Blocks Trump’s $100K H-1B Visa Fee as Unlawful Tax in Major Setback for Administration

Boston, Mass. — June 8, 2026 — In a significant setback for the Trump administration’s immigration enforcement efforts, U.S. District Judge Leo T. Sorokin has ruled that the $100,000 fee imposed on new H-1B visa petitions is unlawful, describing it as an unauthorized tax that exceeds presidential authority under the Constitution and the Administrative Procedure Act.

The decision, issued today in a lawsuit brought by 20 Democratic-led states (led by California Attorney General Rob Bonta), provides immediate relief to tech companies, universities, hospitals, and other employers heavily reliant on the H-1B program for skilled foreign workers in fields such as engineering, medicine, IT, and research.

Background on the Controversial Fee

President Trump issued a presidential proclamation on September 19, 2025, titled “Restriction on Entry of Certain Nonimmigrant Workers.” It required employers to pay a one-time $100,000 fee for most new H-1B petitions filed on or after September 21, 2025—dramatically increasing costs from the previous range of roughly $2,000–$5,000 per petition (depending on employer size and premium processing).

The administration justified the fee as a tool to curb alleged abuses in the H-1B program, protect American workers, and address national security and economic concerns. USCIS implemented the fee via guidance, requiring proof of payment (or an exemption) before processing affected petitions. It applied primarily to new cap-subject petitions and workers outside the U.S. without valid visas.

Prior Legal Developments

• In December 2025, U.S. District Judge Beryl A. Howell (D.D.C.) upheld the fee in a challenge brought by the U.S. Chamber of Commerce and Association of American Universities, citing the president’s broad authority under immigration statutes (e.g., INA § 1182(f)). That ruling is under appeal.

  
  

• A coalition of 20 states filed a separate suit in Massachusetts, arguing the fee functions as a tax (Congress’s power, not the executive’s), lacks proper justification, and harms state economies, workforces, and public services.

  
  

Judge Sorokin’s ruling today directly contradicts the D.C. decision, creating a circuit split likely headed for further appeals. He emphasized that the fee resembles a tax under precedents like the Supreme Court’s Obamacare rulings and violates separation of powers.

Impact and Reactions

• Employers and Workers: Tech giants, universities, and healthcare providers hailed the ruling as critical for addressing talent shortages. Many had paused or limited new H-1B sponsorships due to the added cost.

  
  

• Administration: The Department of Justice is expected to appeal swiftly, arguing the fee falls within executive immigration powers. During a May 29 hearing, DOJ attorneys contended presidential authority has “few limits” under relevant statutes.

  
  

• States and Advocates: Plaintiffs argued the fee ignored economic realities (e.g., median new H-1B salaries around $94,000) and would disrupt industries without congressional approval.

  
  

Latest Updates (as of June 8, 2026)

• The fee is now blocked nationwide (or at least in the affected jurisdictions) pending further proceedings.

• Appeals are anticipated to the 1st Circuit and potentially the Supreme Court, given the conflicting rulings.

• No immediate changes to ongoing H-1B processing for non-fee-affected petitions.

• The case highlights broader tensions over executive immigration authority, H-1B reform, and the balance between protecting U.S. workers and attracting global talent.

  
  

This ruling marks the latest chapter in a fast-moving legal battle that began shortly after the September 2025 proclamation.

Federal Judge Blocks Trump’s $100K H-1B Visa Fee as Unlawful Tax in Major Setback for Administration

U.S. District Judge Leo Sorokin rules Trump’s $100,000 fee on new H-1B petitions unconstitutional, providing relief to tech, healthcare, and universities. Details on the June 8, 2026 ruling, prior decisions, and what’s next for skilled worker immigration.

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